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V0862-22 21 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ISD · reducción en la base imponible

Donation of shares: reduction not applicable if the donee is an ascendant

A son wishes to donate his shares to his father, who then intends to donate them to another son. The DGT has ruled that the 95% reduction in Inheritance and Gift Tax does not apply to the first donation, as the father is neither a descendant nor a spouse.

The question raised

Application to the aforementioned donations of Article 20.6 of the Inheritance and Gift Tax Law and Article 33.3.c) of the Personal Income Tax Law.

The DGT's ruling

The reduction under Article 20.6 of the ISD Law only applies if the transfer is made in favor of a spouse, descendants, or adoptees. As the father is an ascendant, this requirement is not met for the donation from the son to the father. Therefore, the non-subjectivity to capital gains in the IRPF provided for in Article 33.3.c) of the LIRPF is also not applicable to that specific case.

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